Saturday, March 28, 2009

Why MLM Won't last...



Why MLM Won't last.....

MLM has been around for a while, and it's about to die. For you to understand why I say that, you need to know some background...

When MLM began, it was changing from the regular salesman approach, and evolved to recruiting and leveraging salesmen because they realized that it was better to have "1% of 100 people's efforts than 100% of one person's."


For example, let's say there was 1 guy selling 1000 customers a long time ago, and that guy was working too hard. To gain leverage, they decided to recruit new salesmen.


Then, they went to having 10 guys selling 100 customers- the same money, but better leverage. They improved on that by having the salesmen find more salesmen.


Then, they had 100 guys selling 10 customers.


They they realized that the salesmen had more loyalty to the products, so why not make everyone a salesmen, looking for new salesmen?


Then they had 1000 salesmen, all very loyal to the products because, after all, they were salesmen...


You see, according to the current MLM philosophy, all of the salesmen (or "Reps" or "Distributors", or "IBO's)) are selling to themselves, and are looking for other salesmen who will sell to themselves.

The problem is that someone who sells to themselves isn't a salesman anymore-


THEY'RE A LOYAL CUSTOMER!!!

This is why MLM will die- because it will EVOLVE into something else...

Most companies don't see their reps as customers- and that's where it's been going wrong- the definition of the rep changed, but no one realized it!


When you change your paradigm, and look at the MLM industry not as reps finding reps, but CUSTOMERS FINDING CUSTOMERS, you have a MUCH different outlook on how you grow your business. More than that, you treatyour reps like valuable CUSTOMERS!


When you have reps "Motivating and training" reps, you have one behavior, when you have customers evangelizing and finding new customers, you have a different behavior.


Most people HATE being reps- but LOVE being loyal, RECOGNIZED customers.


Instead of "motivating" your reps with more money (truly, the only way an MLM seems to ever motivate a rep), you stimulate sales with promotions, contests, and FUN things to help your CUSTOMERS spread the word about their LOVE for your product and company.


A friend of mine owns a snack company (PeeledSnacks.com) and to stimulate sales, they got their customers to take pictures of themselves with the snacks in random places. The company president chose her favorite, (and gave prizes for most votes and such) and a few went on the website for the month.


Well, that customer obviously had to ask people to vote, and when they did, they were told ALL about Peeled Snacks. And some people bought some snacks. And of those, some bought "monthly delivery". Well, what the hell is "Monthly Delivery"?


AUTOSHIP.


So, an extremely silly contest (where there was no money involved) generated some new AUTOSHIP customers. If it worked for Peeled Snacks, why not make it work for an MLM?


Here's an email a CUSTOMER might send out:


"Dear friends,


Most of you guys know I LOVE Jingle Juice, and they're having a contest of who can have the most creative picture of a juice bottle. The winner gets to be on the website for a month, and I'd LOVE to win! Please go to http://www.JingleJuice.com/Bonesand vote for me- thanks!"


Love, Bones.


And what happens when they get to JingleJuice.com/Bones? It asks them to vote on pictures, all the meanwhile playing a commercial for how great jingle juice is, and how you can order a sample for only $5, or they can order a full bottle (their vote can even count more!), and learn all about how Jingle Juice pays it's customers.


"You can also watch these videos on how so-and-so lost weight, or made enough money for a second honeymoon. Join our community called 'JingleGym' where we all help each other with our fitness goals, and raise awareness for people dying of diabetes. All available with your purchase- no wonder people all over the world like your friend Bones (whose picture and testimonial is right here) are involved with Jingle Juice."


And guess what happens when you order your bottle? We send you info on our "Paid customer program" and ask YOU to participate. "After you try our juice, you'll know why we don't have to pay Madison avenue to advertise on TV- Instead, you and your family will be our advertisement, and we'll pay you. Sound good?"


We have THIS opportunity RIGHT NOW with HUB to lead the charge of the NEW PARADIGM for MLM- someone will do this, and will be wildly successful at it- we can be FIRST.


COMMUNITY FIRST!!

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